Hotel Property Investments Ltd
Hotel Property Investments — Merger or Acquisition (October 2024)
10 slides from Hotel Property Investments's merger presentation, Oct 2, 2024
Slide 1: Charter Hall Retail REIT & Hostplus Offer
October 2024 For personal use only Charter Hall Retail REIT & Hostplus Offer HPI’s Board unanimously recommends that HPI securityholders REJECT the Offer 1
Slide 2: Overview
Overview For personal use only HPI owns a unique portfolio of high-quality pub assets Charter Hall Retail REIT and Hostplus have made an unsolicited and conditional offer (“Offer”) to acquire all securities in HPI at a cash price of $3.65 per HPI security, less any rights (including distribution
Slide 3: HPI's unique portfolio of pub assets
HPI’s unique portfolio of pub assets For personal use only HPI is the only pure-play pub REIT in the S&P / ASX 300 Index • Internal management with strong investor alignment and low management costs • Meaningful scale with secure, growing revenue and attractive lease structure Unique, high-quali
Slide 4: Strong landlord / operator relationship
Strong landlord / operator relationship For personal use only Australian Venue Co (AVC), HPI’s major pub operator, operates over 200 venues Australia wide, with revenue >$1bn HPI Lease rent review mechanism by income (as at Jun-24) • Experienced operator 2.5% - Lower of • Demonstrated track record
Slide 5: Growth prospects
Growth prospects For personal use only Strong Internal Growth prospects • Demonstrated active management of portfolio with portfolio enhancement achieved through disposal of non-core assets and acquisition of higher quality assets and investment in existing portfolio • Ongoing refurbishment progra
Slide 6: HPI is financially strong and offers growing distributions
HPI is financially strong and offers growing distributions For personal use only HPI is in a strong capital position HPI debt facilities (as at Jun-24) • Robust balance sheet with gearing of approximately 35% (lower end of target range) with Undrawn Bank Debt - $37.9 million a diversified funding
Slide 7: Offer materially undervalues HPI
Offer materially undervalues HPI For personal use only The Offer materially undervalues HPI and fails to recognise the unique and strategic value of HPI’s A-REIT Control Transactions – Premium / (discount) to NTA1,2 portfolio Transaction precedents in the A-REIT sector highlight that control typ
Slide 8: Charter Hall / Hostplus approach is unsolicited and opportunistic
Charter Hall / Hostplus approach is unsolicited and opportunistic For personal use only HPI recently appointed John White as CEO and Managing Director who has S&P_ASX 200 A-REIT vs. 10 year Bond significant property and capital markets experience 1,900.00 4.600 • Additional skills and experience a
Slide 9: HPI Board unanimously recommends that securityholders REJECT the Offer
HPI Board unanimously recommends that securityholders REJECT the Offer For personal use only The Board has considered the offer carefully and unanimously recommends that securityholders REJECT the offer The Board has concluded that the offer is opportunistic, not compelling and materially underv
Slide 10: Important notice
Important notice For personal use only This presentation and any accompanying annexures (Presentation) has been prepared by Hotel Property Investments Limited ACN 010 330 515 AFSL 479719. Figures stated in this Presentation are as at the date provided at the start of this Presentation and all doll
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